Happy Forgings Limited, a leading manufacturer of precision-engineered and machined components, has announced that it has received a major international order for the supply of components for power generation applications. This order, which comes from a North American manufacturer of power generation equipment for industrial, commercial, and residential applications, is a significant milestone for the company.

The order details were disclosed in a letter sent to the BSE Limited and National Stock Exchange of India Ltd on November 14, 2024. The order involves the supply of precision-engineered and machined components, a critical component for power generation systems.

Here are the important details of the order:

• Name of the awarding entity: The order has been placed by a North American manufacturer specializing in power generation for industrial, commercial, and residential sectors.
• Terms of the order: The order is specifically for the supply of precision-engineered and machined components required for power generation.
• Nature of the order: The contract is an international supply order.
• Execution period: The order is set to span a minimum of five years, with the possibility of an extension beyond the initial period. Supplies will begin in Q2 FY26 and will continue through to FY31.
• Size of the order: The order is valued at ₹28 crore per year at fully ramped-up supply volumes, with a total value ranging between ₹135 crore and ₹145 crore over the contract's duration.
• Promoter involvement: There is no involvement from the promoter, promoter group, or group companies in the awarding entity.
• Related party transaction: The contract does not involve related party transactions and is done at "arm's length".

This international order is a testament to Happy Forgings' growing reputation in the global power generation industry, showcasing its ability to meet the precision needs of a highly demanding sector. The significant order value, combined with the long-term supply commitment, places Happy Forgings in a favorable position for future growth and stability.

Stock Market Impact:

This announcement is likely to boost investor confidence in Happy Forgings. With such a sizable contract and a clear timeline for execution, the company’s growth prospects appear solid. The ₹28 crore per annum order indicates a steady revenue stream, with the potential for expansion based on the long-term contract.

Additionally, the North American client underscores the company’s ability to compete in international markets, a key factor that investors often look for when assessing the company’s global competitiveness. Happy Forgings’ ability to secure such large-scale contracts in the power generation sector highlights the company’s operational excellence and its significant role in the engineering component supply chain.

Conclusion:

Happy Forgings is poised for strong growth with the receipt of this significant supply order. The contract not only positions the company as a reliable supplier of precision-engineered components but also paves the way for its expansion in international markets. The long-term nature of the order, combined with the substantial financial value, offers Happy Forgings a stable and growing revenue stream in the coming years, reaffirming its position as a key player in the industry.

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